This is an area where we know if we build school cultures and communities of learning and we provide resources to attract teachers and retain them - and it's not only money, but money is one of those elements - if we provide excellent principals and terrific leadership at schools, students will benefit.

I think it was consistent with the spirit of the meeting that we are seeking common ground and recognizing those areas that we continue to disagree.

But the tone is entirely constructive. No one thought the $4.3 billion increase is a figure to be sneezed at.

We need new classrooms in places, notably in Los Angeles, where the civic disgrace of overcrowded schools must be dealt with.

That is part of the ongoing discussion and the agreement to disagree.

We agreed to disagree. We continue to disagree about the schedule, timing and amounts in the past but agreed to continue to talk about it.

What this budget does is express (Schwarzenegger's) best judgment of how all the competing needs of California can be met and in this case provide a very large increase in education funding. What he also understands is that his process requires a long and detail discussion with the Legislature, which he is eager to engage.